Education Funding. Technical Paper Fall Ministry of Education

Education Funding Technical Paper 2017-18 Fall 2017 Ministry of Education

Une publication équivalente est disponible en français sous le titre suivant : Financement de l éducation : Document technique 2017-2018, automne 2017, sur le site Web du ministère de l Éducation. ISBN: 978-1-4606-3939-9(PDF)

Table of Contents Introduction... 5 Purpose... 5 Key Changes for 2017-2018... 5 Further Information... 19 Education Funding Grants... 20 2017-18 Grant Allocations (Projections)... 22 Pupil Foundation Grant... 23 Pupil Foundation Grant Components... 23 School Foundation Grant... 30 Additional Compensation for Principals and Vice-Principals... 35 Special Purpose Grants... 36 Special Education Grant... 37 Special Education Per-Pupil Amount (SEPPA) Allocation... 38 Differentiated Special Education Needs Amount (DSENA) Allocation... 38 Special Equipment Amount (SEA) Allocation... 39 Special Incidence Portion (SIP) Allocation... 40 Facilities Amount (FA) Allocation... 40 Behaviour Expertise Amount (BEA) Allocation... 41 Language Grant... 43 English as a Second Language/English Literacy Development (ESL/ELD) Allocation... 44 French as a Second Language (FSL) Allocation... 45 French as a First Language (FFL) Allocation... 46 Programme d'appui aux nouveaux arrivants (PANA) Allocation... 46 Actualisation linguistique en français (ALF) Allocation... 47 Indigenous Education Grant... 50 Indigenous Languages Allocation... 51 Indigenous Studies Allocation... 52 Per-Pupil Amount (PPA) Allocation... 52 Board Action Plans (BAP) Allocation... 54 Geographic Circumstances Grant... 55 Remote and Rural Allocation... 55 Rural and Northern Education Fund (RNEF) Allocation... 62 Learning Opportunities Grant... 65 Demographic Allocation... 66 Literacy and Math Outside the School Day Allocation... 68 Student Success, Grade 7 to 12 Allocation... 69 Grade 7 and 8 Student Success and Literacy and Numeracy Teachers Allocation... 71 School Effectiveness Framework Allocation... 71 Ontario Focused Intervention Partnership (OFIP) Tutoring Allocation... 71 Specialist High Skills Major (SHSM) Allocation... 72 Mental Health Leaders Allocation... 72

Outdoor Education Allocation...73 Library Staff Allocation...73 Local Priorities Fund... 74 School Authorities Amalgamation Adjustment... 75 Safe and Accepting Schools Supplement... 76 Safe and Accepting Schools Allocation... 76 Urban and Priority High Schools Allocation... 79 Continuing Education and Other Programs Grant... 80 Cost Adjustment and Teacher Qualifications and Experience Grant... 83 Cost Adjustment Allocation... 83 Teacher Qualifications and Experience Allocation... 84 Early Childhood Educator Qualifications and Experience Allocation... 86 New Teacher Induction Program (NTIP) Allocation... 87 Support for Professional Development... 88 Earned Leave Plan... 88 Retirement Gratuities... 89 Benefits Trusts Allocation... 89 Student Transportation Grant... 91 Enrolment Adjustment Allocation... 91 Cost Update Adjustment Allocation... 91 Fuel Escalator and De-escalator Allocation... 92 Funding for Transportation to Provincial or Demonstration Schools... 94 Funding for Summer School Transportation... 94 Declining Enrolment Adjustment... 95 Determining the 2017-18 First Year Component... 95 Determining the 2017-18 Second Year Component... 97 School Board Administration and Governance Grant... 98 Trustees Allocation... 99 Reporting Entity Project Allocation...101 Parent Engagement Funding Allocation...101 Internal Audit Allocation... 102 Board Administration Allocation... 103 Central Employer Bargaining Agency Fees Allocation... 106 Human Resource Transition Supplement... 106 Funding for Capital Planning Capacity Allocation... 107 Technology Enabled Learning and Teaching Contact (TELT) Allocation... 107 Managing Information for Student Achievement (MISA) Local Capacity Allocation... 107 School Facility Operations and Renewal Grant... 109 Operations Allocation... 110 Community Use of Schools Allocation... 117 Allocation for Licensing and Related Fees for Approved Asset Management Software... 117 Capital Lease Amount on School Authority Amalgamation... 117 Section 23 Facilities Amount Allocation... 118 School Renewal Allocation... 119 Debt Service Support... 127 Capital Funding... 129

Capital Planning Capacity Program... 131 Capital Accountability Procedures... 133 School Authorities Allocation... 138 Enrolment... 139 Fees... 140 Reporting and Accountability... 141 Balanced Budget, Enveloping, Flexibility, and Other Reporting Requirements... 142 Provincial Transfers for 2017-18... 149 Appendix A Abbreviations... 151

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Introduction Purpose This paper contains an overview and details of the grant formulas and other criteria for education funding through the Grants for Student Needs (GSN) that are used to calculate school boards 2017 18 allocations for budgeting and financial reporting purposes. Some of the measures set out in this paper can only take effect if certain regulations are made by the Lieutenant Governor in Council under the Education Act. Such regulations have not yet been made. Therefore the content of this paper should be considered to be subject to such regulations, if and when made. The information included in this document is provided for information purposes only and is not binding. If there are discrepancies between this paper and O. Reg. 252/17 (Grants for Student Needs Legislative Grants for the 2017-2018 School Board Fiscal Year), O. Reg. 253/17 (Calculation of Fees for Pupils for the 2017-2018 School Board Fiscal Year) or O. Reg. 254/17 (Calculation of Average Daily Enrolment for the 2017-2018 School Board Fiscal Year) made under the Education Act, the regulations prevail. Key Changes for 2017-2018 This section provides an overview of the key changes in education funding. Further details can be found in the relevant sections of this paper. In 2017-18, funding to school boards through the GSN is projected to be $23.9 billion. The key changes for the 2017-18 GSN focus on: Enhancements to implement the recently negotiated agreements Trustees associations, education workers unions, and teachers federations have successfully reached nine central agreements, which will be effective from September 1, 2017 to August 31, 2019. The 2017-18 GSN reflects investments to support the first year of the agreements. Enhancements to implement the recently negotiated agreements - l Association des directions et directions adjointes des écoles franco-ontariennes (ADFO), the Catholic Principals' Council of Ontario (CPCO), the Ontario Principals' Council (OPC), l Association des conseils scolaires des écoles publiques de l'ontario (ACEPO), Technical Paper 2017-18, Fall 2017 5

l Association franco-ontarienne des conseils scolaires catholiques (AFOCSC), the Ontario Catholic School Trustees Association (OCSTA), the Ontario Public School Boards Association (OPSBA) and the Crown reached an agreement to extend the 2014-18 memorandum of settlement by two years. Capital investments to ensure that school boards can continue to invest in high priority needs to major building components and systems and support the reduction of greenhouse gas emissions from facilities in the education sector. Regular policy and technical updates for the 2017-18 school year, including technical amendments to the GSN and the final year of phase-in for three key transformational changes. This includes updates to: o Indigenous Education, o School Foundation Grant, o Keeping up with Costs, and o Ongoing implementation and other changes. Investments to further improve education for students in rural and northern communities. Technical Paper 2017-18, Fall 2017 6

Enhancements to Implement the Recently Negotiated Agreements to Maintain Peace & Stability in Education Trustees associations, education workers unions, and teachers federations have successfully reached nine central agreements. Together, these agreements will provide two additional years of labour stability. They will also enable the ministry and all of the ministry s education partners to continue along the path of achieving excellence for Ontario s students. Of the nine agreements, eight are two-year contract extensions and one is a new two-year agreement. Seven of the agreements have been ratified. All nine agreements will be effective from September 1, 2017 to August 31, 2019. The 2017-18 GSN reflects investments for the first year of the agreements to support the following: Modest wage increases and investments in benefits transformation; Local priorities funding including more staffing support for special education students; Class size investments for full-day kindergarten (FDK) and Grades 4-8; and, Community use of schools and other priorities. In addition to the GSN enhancements identified above, there are labour-related investments outside of the GSN. Please see the EPO memo for more details. The parties have agreed that any terms not included in the 2017-19 agreements, including both central and local terms from the 2014-17 agreements, remain status quo. Salaries and Professional Development The ministry will provide a 1.5 per cent salary benchmark increase for staff * in 2017-18 (projected to be $257.2 million). In addition, the ministry has committed to provide funding for a one-time payment in 2017-18 for professional development, equivalent to the amount that would have been generated if the salary benchmarks for these staff had been increased by 0.5% (projected to be $85.7 million). All unions and federations have agreed to conduct a survey of their members on the use of these funds (meant for professional development and other professional expenses) and to provide them to the ministry. * Does not include Principals, Vice-Principals and Directors of Education. Technical Paper 2017-18, Fall 2017 7

Employee Health, Life & Dental Benefits Transformation Inflation protection increases or increases to base funding for the provincial benefits trusts resulting from the agreements will be reflected in updated table amounts for 2017-18. These table amounts also reflect projected staffing in boards for 2017-18, as well as updates to the underlying board shares of the benefit costs derived from the updated 2014-15 benefit costs for school boards. Local Priorities As a result of the education sector labour negotiations and discussions, several targeted education investments were discussed, in addition to compensation and benefit enhancements. The ministry has agreed to establish a Local Priorities Fund (LPF) of $223.2 million in 2017-18 to address a range of local priorities and needs. This may include more special education staffing to support children in need, "at-risk" students and adult education. These funds could support about 875 full-time equivalent (FTE) teachers and about 1,600 to 1,830 FTE education workers. Actual staffing will vary depending on specific agreements, local discussions and compensation specific to each board, as well as job security provisions, such as staffing reductions related to declining enrolment and other exceptions. Where a labour agreement provides for staffing, the LPF is to be used by school boards to hire teachers and education workers accordingly. As always, this will be done through the creation of new positions or to mitigate against the reduction of positions, subject to the job security provisions outlined in the applicable central agreement. The availability of the LPF does not negate or nullify a board s established budget plan or need to adjust staffing levels through attrition. However, it is not generally intended that the LPF will be used to simply fund the replacement of the same positions reduced through attrition following the date of this memorandum. Boards that intend to use the LPF in this manner must be prepared to demonstrate local circumstances supporting such use. Subject to demonstrated local circumstances, where a local union has a concern about the use of attrition, such concerns may be raised at the central dispute resolution committee, where the Crown is a participant. Community and Other Priorities Funding The Community Use of Schools Allocation allows boards to reduce the rates for school space used by the community by helping boards with the costs involved with keeping schools open after hours such as heating, lighting, and cleaning. The ministry is providing a 3% increase to this funding (approximately $0.8 million). Technical Paper 2017-18, Fall 2017 8

There will also be new funding through the School Boards Administration and Governance Grant to help boards manage the agreements through the Human Resource Transition Supplement ($10.0 million). Class Size Investments The government has made a commitment to invest in reducing large classes in FDK and Grades 4 to 8. This commitment is a part of the government s plan to improve public education and advance student achievement and well-being. The ministry held consultations with teachers federations, education workers unions and trustees associations. The feedback from these consultations was valuable, and has, in part, shaped the proposed amendments to class size. Full-Day Kindergarten (FDK) Currently FDK is funded based on a board-wide average of 26 students per class. For the school year 2017-18, the government intends to implement a class size cap that will prevent large FDK classes. This GSN investment will lower the funded average class size to 25.75 in 2017-18 (projected to be $16.7 million) to provide additional funding to help boards manage the costs associated with meeting the caps. The class size regulation will continue to require an average FDK class size of no greater than 26, but will now also require at least 90 percent of FDK classes to have 30 or fewer students in 2017-18. Up to 10 percent of FDK classes can reach up to 32 students if they meet one of the following exceptions: (a) If purpose-built accommodation is not available (this exception will sunset after five years); (b) If a program will be negatively affected (e.g., French Immersion); or (c) Where compliance will increase FDK/Grade 1 combined classes. FDK classes combined with other grades (e.g., FDK/Grade 1) will continue to be subject to other class size requirements (e.g., primary class size). Additionally, boards must hire an ECE for all FDK classes in the same school and same track in the case where one of those classes has less than 16 students while at least one other class has more than 30. Technical Paper 2017-18, Fall 2017 9

Grades 4-8 Class Size In 2017-18, the funded average class size will be reduced to 24.17 (projected to be $39.6 million). Over five years, the funded average class size for Grades 4-8 will be reduced to 22.85 for all school boards. Any board with a regulated Grade 4-8 class size average maximum exceeding 24.5 will be required to reduce its Grade 4-8 maximum class size average to 24.5 within five years. The class size regulation will be amended each year to reduce the maximum class size to the extent that can be supported by the additional funding, or until the board reaches a maximum average class size of 24.5. Boards whose regulated class size average maximum is at or below 24.5 will not be required to lower their maximum average class sizes The ministry will also engage the sector to assess the ongoing space requirements in schools. An additional memo will be released outlining the outcomes of those conversations with our education partners. Capital Capital funding plans related to school renewal have been released. Details of the other capital funding programs are provided in a separate memorandum. School Condition Improvement (SCI) / School Renewal Allocation (SRA) The SCI program addresses renewal needs focusing on ensuring facilities are in good condition, energy efficient, accessible and safe. SRA funding improves the more visible elements of schools including flooring, walls, ceilings, playing fields and more. In June 2016, the ministry announced a historic investment in school renewal funding to keep schools across Ontario in a state of good repair. The ministry will continue to invest at this level for a total of $1.0 billion in SCI funding in 2017-18. There will also continue to be an additional $40 million for the SRA. This will bring the SRA to a total projected investment of about $357 million. This maintains the government s commitment to invest $1.4 billion in school renewal. The ministry is committed to continuing this level of investment in 2018-19. Greenhouse Gas (GHG) Reduction Immediate Funding Available The Government of Ontario s Climate Change Action Plan (CCAP) outlines specific commitments for meeting the Government s GHG emissions reduction target by 2020. Technical Paper 2017-18, Fall 2017 10

The ministry is pleased to announce, as part of the $1.0 billion investment in SCI funding for the 2017-18 school year, a $200.0 million initiative that will support the reduction of GHG emissions from facilities in the education sector. As this priority is urgent, this $200.0 million is being made available to boards immediately to take advantage of the summer months and will be effective until March 2018. Eligible expenditures under this program will support the replacement, renewal and installation of new energy efficient building components in older elementary schools, secondary schools and administrative buildings. Energy efficient building components include: energy efficient lighting systems, HVAC systems/controls and other pre-defined enhancements to the building envelope. Indigenous Education The ministry has engaged with a broad range of stakeholders in discussions focused on funding allocations that support equitable outcomes for all students. This included engagement with First Nation, Métis, and Inuit education partners. To reflect the ongoing conversations with the ministry s indigenous partners, the ministry has changed the name of the First Nation, Métis, and Inuit Education Supplement and its allocations as per the table below: Former Title New Title (2017-18) First Nation, Métis and Inuit Education Supplement Native Languages Allocation First Nation, Métis and Inuit Studies Allocation Indigenous Education Grant Indigenous Languages Allocation Indigenous Studies Allocation Enveloping the Per-Pupil Amount (PPA) of the Indigenous Education Grant (formerly First Nation, Métis, and Inuit Education Supplement) In 2017-18, the ministry is enveloping the PPA allocation of the Indigenous Education Grant to ensure this funding is used to support programs and initiatives aimed at improving Indigenous student achievement and well-being and closing the achievement gap between Indigenous students and all students. This amount is projected to be $25.3 million in 2017-18. Boards will continue to be required to spend at least $84,083.77 in 2017-18 on a dedicated Indigenous Education Lead (Lead). Any remaining funds in the PPA must be used to support Technical Paper 2017-18, Fall 2017 11

the implementation of the Ontario First Nation Métis and Inuit Education Policy Framework (Framework) through the Board Action Plan on Indigenous Education. Update to the Lead Position In 2017-18, all boards must allocate at least 1.0 FTE for the dedicated Lead position. The Lead must be hired full-time and must be dedicated only to this role of the Lead. Exceptions may be determined by the ministry in collaboration with school boards for geographic reasons (northern and rural boards). The Lead will work closely with senior board administration to implement the Framework. Each school board will also be required to identify a Supervisory Officer who is accountable for the implementation of the Framework, and has oversight for the work of the Lead if the Lead is not a Supervisory Officer. School Foundation Grant (SFG) Starting in 2017-18, the government is making additional investments in supports for school administration through the SFG. These changes are projected to result in a net investment in the GSN of approximately $4.6 million in 2017 18, while the total SFG is projected to be $1.47 billion. Multi-Building Adjustment In 2017-18, the ministry is introducing funding for an additional principal for elementary or secondary schools (excludes combined schools) that consist of multiple buildings on the same campus with large enrolment. This investment recognizes differentiated enrolment thresholds for English-language boards and French-language boards recognizing the unique needs of boards operating in a minority language context. Elementary Secondary English-language Each at least 150 ADE & average at least 300 ADE Each at least 200 ADE & average at least 700 ADE French-language Each at least 100 ADE & average at least 150 ADE Each at least 150 ADE & average at least 350 ADE Technical Paper 2017-18, Fall 2017 12

French-Language Board Adjustment Also starting in 2017-18, French-language boards regular schools will generate funding as if they were distant schools. This investment recognizes that boards operating in a minority language context may face greater difficulty in meeting school size thresholds. School Foundation Grant Funding Changes In 2017-18, the School Foundation Grant will provide funding based on a campus definition of a school for the purposes of funding school administration. A campus is defined as property or properties owned, leased or rented by a school board that are linked by a contiguous property line. This change will also affect other grants in the GSN that are based on the definition of a school for the purposes of the School Foundation Grant. The impacts on GSN funding will be phased-in over four years. These School Foundation Grant funding changes were based on recommendations of the Technical Advisory Committee (TAC), which advises the ministry on complex technical issues related to the GSN. Keeping Up with Costs The GSN has been updated to assist school boards in managing increases to electricity, transportation, and other non-staff school operations costs. In 2017-18, the projected cost is $31.4 million. In 2017 18, the Student Transportation Grant will be increased by 2 per cent to help boards manage increased costs. As in previous years, this update will be netted against a school board s transportation surplus. In addition, funding adjustments due to fuel price changes will continue to be triggered by the fuel escalation and de-escalation mechanism throughout the school year. The ministry will also provide a 2 per cent cost benchmark update to the non-staff portion of the School Operations Allocation benchmark to assist boards in managing the increases in commodity prices (natural gas, facility insurance, electricity, and other costs). Ongoing Implementation and Other Changes In 2017 18, the ministry will continue to implement important GSN reforms that began in prior years. Details on these reforms as well as other in-year changes can be found below. Technical Paper 2017-18, Fall 2017 13

Existing and Prior Labour Agreements In 2017-18, funding is being provided through the additional compensation for principals and vice-principals table to support the salary increase specified in the 2014-18 agreement for 2017-18 and the increase that is effective the last day of the 2016-17 school year. The funding to support the 2016-17 salary increase that was provided through the additional compensation for principals and vice-principals table in 2016-17 has been replaced by an increase to the benchmark salaries for principals and vice-principals of 1.25% in 2017-18. Additional funding is also being provided to support a one-time payment in 2017-18 for professional development for Principals and Vice-Principals in accordance with the 2014-18 agreement. The increase in funding to support salary increases and the funding to support the one-time payment include funding increases through the benefits benchmarks when the salary benchmarks are increased. The portion of this increased benefits funding that is notionally attributable to employee health, life and dental benefits that are provided through the benefit trusts has been netted out of the government contribution amount to support the benefit trusts. This reflects the fact that additional funding to support these trusts is provided separately (see next section for further details). In 2017-18, a 0.25% increase is being provided to salary benchmarks for staff * to reflect the impact on the salary benchmark in 2017-18 of the 0.5% salary increase provided in February, 2017 as part of the 2014-17 agreements. In 2017 18, the ministry will continue to implement a reduction in the benefits funding benchmarks as part of the phase-out of retirement gratuities, which began in 2012 13. As in previous years, the phase-out will be implemented through a reduction to all benefits benchmarks in the GSN. This 0.167 percent reduction will be applied to the benefits benchmarks in the Foundation Grants with equivalent adjustments to the benchmarks in the Special Purpose Grants to reflect the reduction in benefits funding. For school boards that provided one-time payouts of retirement gratuities in 2015 16, funding will continue to be recovered from boards in 2017 18. This recovery, which began in 2016-17, will be over the number of years equivalent to the estimated average remaining service life of school board employees eligible for retirement gratuities as at August 31, 2012. The funding recovered from boards will be to the extent that boards received funding from the ministry and to the extent that boards reported a one-time gain in the early payout of retirement gratuities in 2015 16. * Excludes Principals, Vice-Principals and Directors of Education. Technical Paper 2017-18, Fall 2017 14

Benefits Investments In-Year 2016-17 Changes The GSN table amounts specifying the government contribution and stabilization amounts to support the ongoing funding of Employee Life and Health Trusts (ELHTs) filed in December 2016 were based on preliminary benefit costs and FTE data available as of September 15, 2016. These amounts will be updated in-year to reflect more recent 2014-15 benefits costing and FTE data. The Ministry will update the table in-year to reflect further updates and will be finalized when school boards submit their 2016-17 Financial Statements. The government contribution and stabilization amounts will be updated to reflect the changes made to the FTE data, the changes made to the per FTE funding amount for those groups that secured a fixed funding amount, as well as any changes made to the school boards trust implementation date; since these amounts are prorated to align with the timing of the implementation of each bargaining/employee group. These changes will be communicated to school boards through individualized letters. The impact of these changes on 2017-18 will be reflected in the updated 2017-18 GSN table amounts. School Board Administration and Governance Grant (SBAGG) 2017-18 is the final year of a four-year phase in of the funding model for the SBAGG. There will also be a corresponding change to the Declining Enrolment Adjustment. In addition a change is made to the accountability provisions for French boards that adds the French-language equivalence component of the Remote and Rural Allocation to the limit on net administration and governance expenses, recognizing that school boards operating in a minority language context could face higher costs in obtaining goods and services. School Board Efficiencies and Modernization (SBEM) 2017-18 is also the final year of a three-year phase in of measures introduced in 2015-16 to encourage the management of underutilized school space through the SBEM strategy. Differentiated Special Education Needs Amount (DSENA) Allocation Changes to reflect the final year of a four-year phase in of a new funding model for the Differentiated Special Education Needs Amount Allocation, and other adjustments. 2011 Census and National Household Survey (NHS) 2017-18 marks the second year of the three-year phase-in of 2011 Census and NHS data to the Indigenous Education Grant and Language Grant. Technical Paper 2017-18, Fall 2017 15

Literacy and Math Outside the School Day Allocation The ministry recognizes that, for some students, the transition from grade 6 to 7 can be challenging. In 2017-18, the ministry is revising its policy so that a student who has completed grade 6 can access a summer (i.e., July 2018 or August 2018 before grade 7) class or course in literacy and/or math for grade 7 students. Effective summer 2018, the ministry will be offering funding so that a student who has completed grade 6 can access a summer class or course (i.e., July or August 2018, before grade 7) in literacy and/or math for grade 7 students. This funding will be available for district school boards to support students for whom a remedial program in literacy and/or math has been recommended by the principal of the day school. Grade 6 students transitioning to Grade 7 in the summer are not funded for mathematics and literacy outside the school day during the 2016-17 school year. A pilot program planned for summer 2017 will be announced in a later memorandum. Updated Urban and Priority High Schools (UPHS) Allocation The ministry is updating the UPHS allocation. Funding will be allocated on a board level based on a funding model that uses socio-economic, academic achievement and suspension data. Boards will be required to spend these funds on programs and initiatives that support at-risk students in ministry-approved secondary schools. A detailed list of these schools has been shared with boards. Rural Education This spring, the government held an engagement on new approaches to supporting education in rural and remote communities. This engagement included regional in-person engagements throughout rural Ontario as well as an online survey. Discussion topics balanced programming considerations, the need to leverage assets for the benefit of the community where possible, and feedback on funding approaches Following up on these consultations, the ministry is investing an additional $20 million starting in September 2017, through the Rural and Northern Education Fund (RNEF) as an enhancement to the GSN. This funding will be dedicated for school boards to further improve education for students from rural communities. Transportation In response to the Auditor General s recommendation that the Ministry of Education revisit the current student transportation funding formula, the ministry will proceed with a 12 to 18 month multi-stakeholder engagement to solicit input and feedback to renew the vision of student transportation in Ontario. Technical Paper 2017-18, Fall 2017 16

The engagement will focus on transportation funding principles, the roles of government and school boards, and interactions with other services outside of education. Feedback gathered from the consultation will be used to inform the following outcomes: The delivery of student transportation funding to school boards; and Future policy development. School Authorities As in previous years, funding for school authorities will be adjusted in 2017 18, as appropriate, to reflect changes in funding to district school boards. Technical Paper 2017-18, Fall 2017 17

Reporting Dates for Submission of Financial Reports The ministry has established the following dates for submission of financial reports: Date Description June 30, 2017 Board Estimates for 2017 18 November 15, 2017 November 24, 2017 December 15, 2017 Board Financial Statements for 2016 17 Board Enrolment Projections for 2018 19 to 2021 22 Board Revised Estimates for 2017 18 May 15, 2018 Board Financial Report for September 1, 2017, to March 31, 2018 Technical Paper 2017-18, Fall 2017 18

Further Information If you have any questions about the material in this paper, please contact your Ministry of Education regional office or the following: Subject Contact Telephone and email 2017-19 Labour Agreements Brian Blakeley (416) 325-2836 brian.blakeley@ontario.ca Benefits Transformation Romina Di Pasquale (416) 325-2057 romina.dipasquale@ontario.ca Capital Policies and Rural Education Colleen Hogan (416) 325-1705 colleen.hogan@ontario.ca Financial Accountability and Reporting Med Ahmadoun (416) 326-0201 med.ahmadoun@ontario.ca Requirements Indigenous Education Taunya Paquette (416) 314-5739 taunya.paquette@ontario.ca Operating Funding Andrew Bright (416) 325-2037 andrew.bright@ontario.ca Special Education Louise Sirisko (416) 325-2889 louise.sirisko@ontario.ca Student Transportation Cheri Hayward (416) 327-7503 cheri.hayward@ontario.ca Technical Paper 2017-18, Fall 2017 19

Education Funding Grants The current funding system for education is intended to: provide a fair allocation for all students, wherever they live in Ontario; operate in a fair and non-discriminatory manner as between the public and Catholic boards in both the English-language and French-language systems; provide funding to maintain schools and to build new schools where they are needed; allow boards some flexibility to decide how funds will be allocated to programs and supports, and among schools; restrict how boards spend money in some specific areas (e.g. to protect funding for capital and special education, and limit spending on board administration); and promote school board accountability by ensuring that boards report consistently and publicly on how they spend their allocations. Education funding through the GSN in 2017-18 consists of a Pupil Foundation Grant, a School Foundation Grant, and thirteen special purpose grants. Technical Paper 2017-18, Fall 2017 20

Grant Grouping PUPIL FOUNDATION GRANT SCHOOL FOUNDATION GRANT SPECIAL PURPOSE GRANTS Component Classroom teachers Early childhood educators Education assistants Textbooks and learning materials Classroom supplies Classroom computers Library and guidance services Specialist teachers Student Success teachers Professional and para-professional supports Classroom consultants Principals Vice-principals School office support staff School office supplies Projected funding in 2017-18 ($ Million) $10,806.4 $1,468.3 1. Special Education Grant $2,855.7 2. Language Grant $765.0 3. Indigenous Education Grant $66.3 4. Geographic Circumstances Grant $205.1 5. Learning Opportunities Grant $763.5 6. Safe and Accepting Schools Supplement $48.1 7. Continuing Education and Other Programs Grant $142.4 8. Cost Adjustment and Teacher Qualifications and Experience Grant $2,302.6 9. Student Transportation Grant $919.6 10. Declining Enrolment Adjustment $17.3 11. School Board Administration and Governance Grant $612.6 12. School Facility Operations and Renewal Grant $2,413.7 13. Debt Service Support $457.7 TOTAL (Total includes $34.3 million for school authorities) $23,878.5 Technical Paper 2017-18, Fall 2017 21

2017-18 Grant Allocations (Projections) Total: $23.88B * Pupil Foundation Grant, $10.81B School Foundation Grant, $1.47B Special Purpose Grants, $11.57B Special Purpose Grants School Facility Operations and Renewal Grant, $2,413.7M Debt Service Support, $457.7M Special Education Grant, $2,855.7M School Board Administration and Governance Grant, $612.6M Declining Enrolment Adjustment, $17.3M Student Transportation Grant, $919.6M Language Grant, $765.0M Indigenous Education Grant, $66.3M Geographic Circumstances Grant, $205.1M Cost Adjustment & Teacher Qualifications and Experience Grant, $2,302.6M Continuing Education and Other Programs Grant, $142.4M Learning Opportunities Grant, $763.5M Safe and Accepting Schools Supplement, $48.1M * School authorities funding ($34.3 million) is included in the total, but not in the pie chart. Technical Paper 2017-18, Fall 2017 22

Pupil Foundation Grant The Pupil Foundation Grant is a per-pupil allocation that supports the elements of a classroom education that are required by, and generally common to, all students. The Pupil Foundation Grant has four allocations: Kindergarten (JK/SK) Pupil Foundation Allocation, Primary (Grade 1 to 3) Pupil Foundation Allocation, Junior and Intermediate (Grade 4 to 8) Pupil Foundation Allocation, and Secondary (Grade 9 to 12) Pupil Foundation Allocation. For 2017-18, funding through the Pupil Foundation Grant is projected to be $10.81 billion. New in 2017-18 The funded average class size through the Kindergarten (JK/SK) Pupil Foundation Allocation has been reduced from 26 to 25.75 in 2017-18. The funded average class size through the Junior and Intermediate (Grade 4 to 8) Pupil Foundation Allocation has been reduced from 24.5 to 24.17 in 2017-18. Pupil Foundation Grant Components Classroom Teachers Salaries and benefits for classroom teachers to support funded average class sizes, and preparation time for classroom teachers as well as: Elementary Specialist teachers for Kindergarten (JK/SK), Primary (Grade 1 to 3), and Junior and Intermediate (Grade 4 to 8) students, and Student Success and secondary programming teachers for Secondary (Grade 9 to 12) students. Technical Paper 2017-18, Fall 2017 23

Early Childhood Educators (ECEs) Salaries and benefits for ECEs to support the funded average class size for FDK allocated through the Kindergarten (JK/SK) Pupil Foundation Allocation. Depending on Junior Kindergarten and Senior Kindergarten enrolment, Supported Schools may be eligible for additional funding support for ECE staffing in FDK classrooms. Library and Guidance Services Salaries and benefits for teacher librarians and guidance teachers. Guidance teachers at the elementary level are those providing guidance primarily to Grade 7 and 8 pupils. Classroom Consultants Salaries and benefits for teacher consultants and co-ordinators, such as reading specialists and program specialists, who assist teachers in developing curriculum or who work with individual students. Supply Teachers Salaries and benefits for supply and occasional teachers. Education Assistants Salaries and benefits for education assistants who support teachers in the classroom. Professional and Para-professionals Salaries and benefits for staff who provide support services to students and teachers, such as attendance counsellors, lunchroom supervisors, hall monitors, social workers, child/youth workers, community workers, and computer technicians. Professionals and para-professionals who provide support for special education, such as psychologists, psychometrists, and speech pathologists, are funded through a combination of the Pupil Foundation Grant, the Special Education Grant, and other special purpose grants. Elementary Supervision Funding for student supervision in elementary schools. Department Heads Funding for department head allowances in secondary schools. Technical Paper 2017-18, Fall 2017 24

Textbooks and Learning Materials Textbooks and learning materials required to meet the learning expectations of the curriculum may include workbooks, resource materials, science supplies, lab material kits, library materials, instructional software, CD ROMs, DVDs, technology supporting distance education, as well as internet expenses. Learning materials include materials that are used by a student and cannot be used again by another student in the next semester, for example, a chemical used in a chemistry experiment. Classroom Supplies Classroom supplies are items used in the classroom. Classroom supplies are not learning materials that are required to meet the learning expectations of the curriculum; they are materials used to facilitate effective learning in the classroom and include classroom equipment. Classroom Computers Classroom computers (hardware only) and the associated network costs. Technical Paper 2017-18, Fall 2017 25

KINDERGARTEN (JK/SK) Pupil Foundation Allocation Funded Average Class Size 25.75:2 Library and Guidance Services Classroom Consultants # staff per 1,000 ADE benchmark salary + benefits (% of salary) $ allocation per ADE Classroom Teacher * 38.83 $75,084 + 10.61% $3,224.85 Specialist Teacher/ 7.61 $632.01 Preparation Time * Early Childhood Educator 44.27 $30,912 + 26.20% $1,727.11 Teacher Librarian * 1.31 $75,084 + 10.61% $108.63 Guidance Teacher * 0.20 $16.61 0.41 $103,358 + 10.37% $46.77 Supply Teacher $143.57 Education Assistants 0.20 $43,839 + 26.20% $11.06 Professional/Para- 1.73 $59,444 + 21.19% $124.63 Professional Supports Elementary $26.88 Supervision Textbooks and $69.00 Learning Materials Classroom Supplies $82.82 Classroom Computers $34.52 TOTAL Junior Kindergarten & Kindergarten Per- Pupil Amount $6,248.46 NOTE: Pension plan contributions for teachers and other eligible members of the Ontario Teachers Pension Plan (OTPP), are matched by the Government and are not included in the benefit benchmarks. Kindergarten Pupil = JK / SK ADE $6,248.46 Foundation Allocation * Additional funding is recognized through the Teacher Qualifications and Experience Allocation of the Cost Adjustment and Teacher Qualifications and Experience Grant. Additional funding is recognized through the Early Childhood Educator Qualifications and Experience Allocation of the Cost Adjustment and Teacher Qualifications and Experience Grant. Technical Paper 2017-18, Fall 2017 26

PRIMARY (Grade 1 to 3) Pupil Foundation Allocation # staff per 1,000 ADE benchmark salary + benefits (% of salary) $ allocation per ADE Classroom Teacher Classroom Teacher * 50.51 $75,084 + 10.61% $4,194.88 Class size 19.8:1 Specialist Teacher/ 9.67 $803.10 Preparation Time * Library and Guidance Teacher Librarian * 1.31 $108.63 Services Guidance Teacher * 0.20 $16.61 Classroom Consultants 0.41 $103,358 + 10.37% $46.77 Supply Teacher $143.57 Education Assistants 0.20 $43,839 + 26.20% $11.06 Professional/Para- 1.73 $59,444 + 21.19% $124.63 Professional Supports Elementary Supervision $26.88 Textbooks and Learning $69.00 Materials Classroom Supplies $82.82 Classroom Computers $34.52 TOTAL Primary Per- Pupil Amount $5,662.47 NOTE: Pension plan contributions for teachers and other eligible members of the Ontario Teachers Pension Plan (OTPP), are matched by the Government and are not included in the benefit benchmarks. Primary Pupil Foundation Allocation = Grade 1-3 ADE $5,662.47 * Additional funding is recognized through the Teacher Qualifications and Experience Allocation of the Cost Adjustment and Teacher Qualifications and Experience Grant. Technical Paper 2017-18, Fall 2017 27

JUNIOR and INTERMEDIATE (Grades 4 to 8) Pupil Foundation Allocation Classroom Teacher Class size 24.17:1 Library Guidance Services Classroom Consultants # staff per 1,000 ADE benchmark salary + benefits (% of salary) $ allocation per ADE Classroom Teacher * 41.37 $75,084 + 10.61% $3,435.80 Specialist Teacher/ Preparation Time * 8.06 $669.39 Teacher Librarian * 1.31 $108.63 Guidance Teacher * 0.20 $16.61 0.41 $103,358 + 10.37% $46.77 Supply Teacher $143.57 Education Assistants 0.20 $43,839 + 26.20% $11.06 Professional/Para- 1.73 $59,444 + 21.19% $124.63 Professional Supports Elementary $26.88 Supervision Textbooks and $69.00 Learning Materials Classroom Supplies $82.82 Classroom Computers $34.52 TOTAL Junior and Intermediate Per- Pupil Amount $4,769.68 NOTE: Pension plan contributions for teachers and other eligible members of the Ontario Teachers Pension Plan (OTPP), are matched by the Government and are not included in the benefit benchmarks. Junior and Intermediate Pupil Foundation Allocation = Grade 4-8 ADE $4,769.68 * Additional funding is recognized through the Teacher Qualifications and Experience Allocation of the Cost Adjustment and Teacher Qualifications and Experience Grant. Technical Paper 2017-18, Fall 2017 28

SECONDARY (Grades 9 to 12) Pupil Foundation Allocation # staff per 1,000 ADE benchmark salary + benefits (% of salary) $ allocation per ADE Classroom Teacher Classroom Teacher * 42.61 $75,084 + 10.61% $3,538.78 Class size 22:1 Student Success Credit load per pupil 7.5 Teacher/Preparation 15.15 $1,258.21 Time * Secondary Programming* 1.02 $84.71 Library and Guidance Teacher Librarian * 1.10 $91.36 Services Guidance Teacher * 2.60 $215.93 Classroom Consultants 0.46 $103,358 + 10.37% $52.48 Supply Teacher $105.02 Professional/Para- 2.21 $59,444. + 21.19% $159.21 Professional Supports Department Head 9.00 $4,806 + 10.61% $47.84 allowances Textbooks and $92.29 Learning Materials Classroom Supplies $188.87 Classroom Computers $45.03 TOTAL Secondary Per- Pupil Amount $5,879.73 NOTE: Pension plan contributions for teachers and other eligible members of the Ontario Teachers Pension Plan (OTPP), are matched by the Government and are not included in the benefit benchmarks Secondary Pupil Foundation = Grade 9-12 ADE $5,879.73 Allocation * Additional funding is recognized through the Teacher Qualifications and Experience Allocation of the Cost Adjustment and Teacher Qualifications and Experience Grant. Technical Paper 2017-18, Fall 2017 29

School Foundation Grant The School Foundation Grant supports the costs of in-school administration and leadership (salaries and benefits for principals, vice-principals, and office support staff), as well as supplies for school administration purposes. School boards continue to be responsible for decisions regarding the allocation of in-school administration staff to schools. The total School Foundation Grant is projected to be $1.47 billion in 2017 18. New in 2017-18 The following changes have been made to the School Foundation Grant for 2017-18: additional principal funding for elementary or secondary schools (excludes combined elementary/secondary schools) that consist of multiple buildings on the same campus with large enrolment. This investment recognizes differentiated enrolment thresholds for English-language boards and French-language boards, regular schools in French-language boards will generate funding as if they were distant schools. This investment recognizes that boards operating in a minority language context may face greater difficulty in meeting school size thresholds, implementation of a campus definition of a school for the purposes of funding in-school administration, and updates to the additional compensation for principals and vice-principals. Definition of a school for the purposes of the School Foundation Grant Starting in 2017-18, as recommended by the Technical Advisory Committee * (TAC), the definition of a school for the purposes of funding in-school administration through the School Foundation Grant will be as follows: a school facility or collection of school facilities operated by the same board that are located on a single campus. A campus is defined as property or properties owned, leased or rented by a school board that are linked by a contiguous property line. Note: This replaces the list of schools eligible for School Foundation Grant funding that had been frozen since 2011-12, which reflected the School Foundation Grant definition of a school and data * The Technical Advisory Committee consists of experts from school boards and advises the ministry on complex technical issues related to the GSN Technical Paper 2017-18, Fall 2017 30

that was in place prior to the freeze and updated to reflect new openings or closures based on that definition. The former definition was a school facility or collection of school facilities operated by a board that are located on a single campus or form a single program. A school is identified as: an elementary school, if it consists of only an elementary school facility or is comprised of only elementary school facilities; a secondary school, if it consists of only a secondary school facility or is comprised of only secondary school facilities; a combined elementary/secondary school, if a school is comprised of one or more elementary school facilities, and one or more secondary school facilities (for example, Grades 7 and 8 with Grades 9 to 12). Beginning in 2017-18, the financial impact of this change (which also includes the estimated impact on other grants in the GSN that are based on the School Foundation Grant definition of a school) will be phased-in over four years to give boards time to adjust. This will be done through a transition amount that will be provided through the School Foundation Grant via a table amount in the GSN regulation. Tiers There are three tiers of funding supports for school administration. The tiers provide differentiated support for in-school administration in schools based on distance criteria as follows: Supported School (these schools are also eligible to generate funding through the Supported Schools Allocation in the Geographic Circumstances Grant), defined as: a. an elementary school where the next closest elementary school of the board is at least 20 km away, or b. a secondary or combined elementary/secondary school where the next closest secondary or combined elementary/secondary school of the board is at least 45 km away. Distant School, defined as: a. an elementary school that is not a supported school but where the next closest elementary school of the board is at least 10 km away, or b. a secondary or combined elementary/secondary school that is not a supported school but where the next closest secondary/combined elementary/secondary school of the board is at least 20 km away. Regular School, defined as a school which is neither distant nor supported. Supported schools are referred to as outlying schools in the Grants for Student Needs Legislative Grants for the 2017 2018 School Board Fiscal Year regulation. Technical Paper 2017-18, Fall 2017 31

Starting in 2017-18, French-language boards regular schools will generate funding as if they were distant schools. This investment recognizes that boards operating in a minority language context may face greater difficulty in meeting school size thresholds. School Foundation Grant Benchmarks The table below shows the salary and benefits benchmarks for staff funded through the School Foundation Grant as well as the benchmarks for school office supplies: Benchmark Elementary Benchmark Elementary Benefits (% of Salary) Secondary and Combined Elementary/Secondary Benchmark Secondary and Combined Elementary/Secondary Benefits (% of Salary) Principal $114,840 10.37% $125,242 10.37% Vice Principal $108,775 10.37% $114,756 10.37% School Office Support Staff School Office Supplies $43,108 26.10% $45,411 26.10% $2,070.50 + $6.06 per ADE N/A $3,080.50 + $7.07 per ADE NOTES: Pension plan contributions for teachers and eligible members (e.g. principals and vice principals) of OTPP are matched by the Government and are not included in the benchmark benefits. Funding to support the salary increase related to the 2014-2018 extension to the memorandum of settlement is being provided through the Additional Compensation for Principals and Vice Principals table. The number of funded principals for an elementary school is outlined in the following table: Number of Funded Principals ELEMENTARY SCHOOLS N/A School Enrolment (ADE) Supported Schools Distant Schools and French-Language Regular Schools English-Language Regular Schools >0 to <50 0.5 ADE / 100 50 to <100 100 to <150 1 1 ADE / 150 150 1 Any multi-building elementary school in English-language boards that has an average of at least 300 ADE over all buildings on the campus and at least 150 ADE in each building on the campus receives funding for one additional full-time equivalent (FTE) principal. Technical Paper 2017-18, Fall 2017 32